A Cautious Approach to Public Policy and Loot Box Regulation

Researchers are making progress toward determining some of the psychological implications of video game loot boxes, yet the literature still has a long way to go before it can provide a sound basis for policy recommendations. Despite this limitation, however, early studies of loot boxes and addictive behavior frequently suggest some form of loot box regulation, including by public authorities. I suggest that these proposals are premature, as they do not take account of several fundamental economic challenges facing policymakers. A more cautious approach that takes account of costs and unintended consequences is recommended as a complement to ongoing research